A high rate of economic growth in Belarus – an average of about 8% annually from 2001 to 2011 – has helped reduce poverty almost seven-fold. A favorable external environment supported the economic growth in Belarus.
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June 2014 - Global Economic Prospects is a World Bank Group flagship report which twice yearly examines growth trends for the global economy and how they affect developing countries. The reports ... Show More +include three-year forecasts for the global economy and individual developing countries and regions.Europe and Central Asia - OverviewA modest recovery in the developing Europe and Central Asia region remained on track in the first quarter of 2014, despite headwinds from global financial turbulence since late January and the ongoing geopolitical tension between Russia and Ukraine. Industrial output accelerated to an annualized rate of 12 percent in March in the developing Central and Eastern Europe sub-region, notably Hungary and Romania, helped by rising exports to the Euro Area.In Turkey, industrial output continued to expand in the first three months of the year, helped by strong export growth. But momentum has slowed and weakening business and consumer confidence point to softening domestic demand ahead. In addition, higher inflation and past currency weakness are constraining private consumption and investment.Among the developing Commonwealth of Independent States (CIS), slowdown in key trading partners, geopolitical tensions, declining metal and mineral prices and domestic capacity constraints have slowed growth in 2014. Growth in Kazakhstan and Azerbaijan moderated with new delays in bringing additional oil production capacity on-stream.In Ukraine, escalating tensions with Russia and domestic political instability contributed to a 12.5 percent contraction in Q1 GDP. Gross capital flows to the region halved in February but have since rebounded strongly led by a surge in bond issuance. However overall flows remain 42 percent lower than the same period last year and equity flows remain negligible. OutlookThe outlook for the developing Europe and Central Asia region has weakened in the near term, owing to a sharper-than-expected slowdown in a number of large economies in the region, including Turkey, Kazakhstan, and Ukraine. Growth in the region is expected to temporarily weaken to 2.4 percent in 2014 before picking up to 3.7 and 4.0 percent in 2015 and 2016, respectively. While most developing countries in the Central and Eastern Europe sub-region are expected to see strengthening in growth this year as they continue to benefit from stronger import demand from the Euro Area, Turkey remains vulnerable to domestic and external shocks, including higher inflation, political uncertainty, and tighter global financial conditions.For the developing CIS, a marked slowdown is expected this year, reflecting weaker revised forecast for Kazakhstan and Ukraine, as well as broader spillovers from the slowdown in Russia and China, the largest trading and investment partners, and a weakening trend in key commodity prices. The developing CIS is also exposed to worsening geopolitical tensions in Russia and Ukraine.Belarus is heavily exposed through trade linkages to Ukraine and Russia as are Armenia and Moldova, while remittances from Russia are a substantial share of GDP in Armenia, Kyrgyz Republic, Moldova and Tajikistan.RisksHeightened tensions between the European Union (EU) and Russia are a key downside risk to the regional forecast. Given the close economic interdependence between the EU and Russia, an escalation of sanctions would likely impose large economic costs and damage recoveries in both areas, with significant negative spillovers throughout the region. In addition, disorderly adjustments to higher global interest rates - either due to anticipated or actual monetary policy tightening in the United States or general increases in risk aversion - continue to pose a risk. There are also clear downside risks from weaker domestic demand in the Central and Eastern Europe sub-region particularly in the Southern Europe, relating in the near term to devastating floods (especially in Serbia and Bosnia and Herzegovina) and in the medium term to still high unemployment, high private sector debt, and the slow recovery in bank lending amid high (and in some cases rising) nonperforming loans. Downside risks to commodity prices and potential weakening of remittance inflows from Russia represent a major source of uncertainty for developing CIS. Show Less -

VIENNA, June 3, 2014 – Ministers of Finance, business leaders, accounting professionals, and academics from Europe and Central Asia, together with representatives of the World Bank and key EU and inte... Show More +rnational institutions in financial reporting and auditing, met today in Vienna for the 5th Ministerial Conference of the World Bank Centre for Financial Reporting Reform (CFRR). Harald Waiglein, Director General in the Austrian Finance Ministry, welcomed the conference and its theme, telling delegates of the importance Austria attaches to helping countries develop systems that strengthen private and financial sector development in Europe and beyond. “As a long-term partner of the CFRR, the Austrian Government is delighted to see the level of interest and commitment from the countries represented today to achieving reform in their financial reporting systems.”In her keynote address, Laura Tuck, World Bank Vice President for Europe and Central Asia, underscored the importance of a strong small- and medium-enterprise (SME) sector for boosting growth and competitiveness, creating jobs, and enabling people in all social groups to increase their incomes. “Creating environments in which business, especially SMEs, can flourish, is an important element in achieving shared prosperity. Governments need to find the right balance between effective, but not unduly burdensome or restrictive, regulation of business activities. Events like this conference are an excellent way to share ideas and experience, and to discuss the way forward. Then, we all need to go back to doing the hard work to turn these ideas into practice.” She encouraged conference participants to continue to work with the World Bank Group to further improve the quality of corporate financial reporting. The focus of the conference on developing sustainable financial reporting frameworks for SMEs was welcomed by Christian Weinberger, Senior Advisor within the European Commission. “SMEs are drivers of economic growth and innovation, which is why the EU had introduced its ‘Think Small First’ principle,” he explained.Speaking about his country's recent experience in reforming the legal framework in this area, Lazar Krstic, Serbian Minister of Finance, explained how Serbia had overhauled its legal framework relating to accountancy and auditing, including introducing International Financial Reporting Standards (IFRS) for SMEs, which sought to reduce the reporting burden on smaller companies, and developing simplified requirements for the smallest, micro-enterprises. “SMEs are the main engine of the Albanian economy. Simplifying reporting requirements, while seeking to introduce EU and other international good practice, is a priority for us,” said Shkelqim Cani, Albanian Minister of Finance.Anatol Arapu, Minister of Finance of Republic of Moldova, said: “Moldova is registering increased progress. SMEs’ role in the economy of our small country is very important. We are strongly committed to ‘Think Small First’ by developing and implementing appropriate incentives for small business in line with EU requirements.”Speakers welcomed the assistance provided by the CFRR in support of their reform efforts.The CFRR has been in operation since 2007 and the scale and scope of its remit continues to grow. Samia Msadek, Director of Operational Services in the World Bank’s Europe and Central Asia region, told the conference: “Demand for CFRR’s tailored advice and technical assistance in support of financial reporting and auditing reform is increasing, and, going forward, there will be an even greater emphasis on encouraging partners to define and address SMEs’ specific needs. This event is held as the World Bank is reaffirming its commitment to improving public and private sector governance – it is essential to instill trust through transparency and increase accountability at all levels of society.” Martin Ledolter, Managing Director of the Austrian Development Agency, said: “CFRR’s innovative methods to foster both intra- and inter-regional economic cooperation were a showcase example for private sector development.”Conference sessions included exchanges among representatives of the accountancy profession and the business community in Central, Southeast, and Eastern Europe on how accountants can contribute to SME development. There was recognition that smaller businesses need accountants with a broad skill set for sound financial management and to help guide growth. Global standard-setters showcased their contributions to developing standards adapted to the SME environment. However, there was acknowledgement that more needs to be done to promote awareness of new standards and guidance developed for SMEs.-------------------------------------------------------------For more information about the CFRR, please visit: www.worldbank.org/cfrrFor more information about the World Bank’s work in Europe and Central Asia, please visit: www.worldbank.org/eca Show Less -

Improving financial reporting may not be the first thing that springs to mind when thinking about ways to encourage economic growth, attract foreign investment, and create jobs. But, transparent, reli... Show More +able and accurate financial information is a necessary pillar of any sustainable development strategy.Financial reporting delivers information that is crucial for business, by giving business owners a clear picture of how their businesses are performing and allowing them to make informed management decisions. It also provides investors and creditors with reliable information in order to make informed investment or credit decisions, thereby supporting Small and Medium Enterprises (SMEs) in accessing finance and ultimately lowering the cost of credit.Generally speaking, sound financial reporting and effective financial reporting frameworks are highly important elements for a robust business and investment climate, and can help facilitate financial stability and well-functioning financial markets in countries. Take Serbia, for example, which demonstrates what can be achieved relatively quickly, if the timing is right. Serbia began moving towards a market economy in 2000 and implemented a wide range of reforms that included initiating a national system for corporate financial reporting. But, progress was slow. A 2005 World Bank report identified significant weaknesses in the adequacy and quality of financial information, which were detrimental to sustainable economic growth.The growing private sector struggled to compete with state-owned enterprises, whose lack of consolidated financial reporting helped perpetuate systemic risks that went unmonitored in an environment with significant cross-ownership in the financial sector. The Bank report made a range of recommendations and, while some progress was initially made, much more remained to be done, especially on the legal framework. Reform efforts took on a new momentum in 2011, and since, many opportunities to overhaul the financial reporting system in Serbia with a view of improving the business and investment climate were tapped into. Zlatko Milikic, Assistant Minister with responsibility for the Financial System Department in the Serbian Ministry of Finance and Economy since 2011 and a lawyer with vast experience of the financial sector, describes the situation: “The Ministry of Finance and the Serbian Government at large were primarily motivated by the desire to improve the business and investment climate in Serbia, increasing competitiveness and creating the conditions for better economic performance, higher employment and improved fiscal performance.” He adds that, “Developing the SME sector, an important provider of jobs and economic growth, was a particular priority for the government. There was a growing spirit of entrepreneurship in the country and the Government wanted to catalyse this positive spirit.” With Serbia’s ambitions to join the European Union, it was also important that legislation reflected EU requirements. The Serbian authorities, with assistance from the World Bank’s Centre for Financial Reporting Reform (CFRR), shaped a new legislative framework and engaged in broad discussions on reform. A key outcome has been a new Accounting Law, passed in 2013, which emphasizes the requirement for using different reporting standards according to the size and business of companies, as well as company management’s responsibility for financial statements and financial discipline.Crucially, to support the increasingly dynamic and growing sector of smaller private companies and entrepreneurs, simplified accounting requirements were introduced “to reduce their financial reporting burden, allowing them to focus on business growth that has a perspective of boosting the overall economy,” explains Mr. Milikic. Improvements have also been introduced to strengthen audit requirements and clarify responsibility for audit reporting. All of these measures are in line with EU requirements and good international practices. The reform journey continues for Serbia. There is a focus now on ensuring that the modernized accounting and auditing framework is effectively applied, and also on developing the quality of the accountancy profession. “We look forward to working closely with the CFRR during the coming months and years to implement the reforms we have now launched and to carry out the activities planned,” Mr. Milikic says. This spotlight on financial reporting reform is being echoed in many ways across the countries of Europe and Central Asia, with much emphasis being put on the creation of better conditions for the SME sector. Albania is an example. Shkelqim Cani, Albania’s Minister of Finance, points out that “SMEs are the main engine of the Albanian economy and we need to avoid placing unnecessary and costly administrative burdens on them. Financial reporting requirements must reflect this and be coherent with the nature and traits of our economy.” National accounting standards are particularly relevant to SMEs. The Albanian National Accounting Council, with the support of the CFRR, surveyed those preparing financial statements in the country to establish how they could be improved. The response was clear: they needed to be simpler and clearer. “As a result of this,” Mr Cani says, “our National Accounting Council has developed a new set of accounting standards for SMEs, and is focused on further simplifying reporting requirements for small and micro entities while seeking to introduce EU and other international good standards and practices.”In Albania, a recently completed project, the Corporate Financial Reporting Enhancement Project, helped to develop a transparent policy environment and effective institutional framework for corporate financial reporting. The project, carried out by the Albanian authorities in cooperation with the CFRR, supported improvements in the legal framework, the strengthening of the audit oversight system, further development of accounting and auditing education, and the refinement of accounting standards setting.Similar stories are being highlighted in Vienna on 3rd June, as Mr. Cani, Mr. Milikic and other high-level officials gather to discuss common issues at the 2014 CFRR Ministerial Conference. The countries represented at the conference are all at very different stages in their reform efforts, but the opportunity to share experiences and jointly commit to the reform process should eventually reap benefits for SMEs throughout the Europe and Central Asia region. Show Less -

The Government of the Republic of
Belarus (GoB) plans to increase district heating (DH)
tariffs to cost-recovery levels and gradually phase out
subsidies, replacing... Show More + them with social assistance programs.
Residential DH tariffs in Belarus are currently at roughly
10-21 percent of cost-recovery levels. DH subsidies are
highly regressive, add costs to business, and create
significant fiscal risks and macroeconomic vulnerabilities.
The purpose of this report is to analyze the social,
sectoral, and fiscal impacts of the proposed tariff reform,
and to identify and recommend measures to mitigate adverse
impacts of DH tariff increases on the households. The
analysis shows that: 1) the burden of higher DH tariffs will
fall most heavily on low-income groups; 2) the current
system of subsidies is unfair, benefitting wealthy customers
more than the poor; 3) cross-subsidies undermine the
competitiveness of industries in Belarus; and underpriced
residential heat places an increasing fiscal burden on the
GoB and risks macroeconomic instability. The analysis shows
that a negative social impact is manageable if a tariff
increase is accompanied by countervailing measures to
compensate for the loss of purchasing power, in particular
of the poor, through targeted social assistance and energy
efficiency programs. The rest of the report is organized as
follows: Section 1 describes the GoB's plans for the
sector. Section 2 analyzes the principal challenges in the
sector that necessitate tariff reform. Section 3 discusses
tariff reform options and the likely impact of pursuing each
of these options. Section 4 concludes by recommending a
reform action package that includes customer communication
and engagement, social protection measures and investments
in energy efficiency. The appendices contain material
supporting the analysis in each section. Show Less -

The main objective of the present public
financial management performance report (PFM-PR) is to
provide the Government of Belarus with an objective
up-to-date diagn... Show More +ostic of PFM performance based on the
internationally recognized public expenditure and financial
accountability (PEFA) methodology. The report is expected to
inform the development of the government medium-term program
for PFM reform. As a lead donor the World Bank provided a
qualified team that undertook the assessment in accordance
with the methodology and following the process described in
the concept note agreed with the ministry of finance (MoF).
The World Bank was also responsible for quality assurance of
the PFM-PR using the standard procedures for Bank funded
analytical work and PEFA check requirements. The report
justifies the scoring and describes the analytical work
which has been carried out and the sources of information
used for each indicator. The report takes into account the
changes in PFM performance since 2009 and documents the
reasons for changes in indicator scores from the previous
assessment. PEFA framework focuses primarily on the national
level of a countrys PFM system. At the national level it
seeks to cover the entire PFM system, including
cross-country issues, the revenue side, and the entire
budget cycle from planning through execution to control,
reporting, and audit. A number of indicators are designed to
probe into how the national level interacts with
sub-national governments and with public service providers
at the local level. Show Less -

In the decade since then the representatives from Kazakhstan, the Kyrgyz Republic, Tajikistan, and Uzbekistan first met to develop a common platform to learn from one another, this has grown into an a... Show More +nnual Platform and has spurred the creation of an influential community of practice - spanning more than 20 countries throughout Europe and Central Asia region and beyond. Hundreds of participants - from Albania to South Korea - have benefited from this annual gathering and thousands more have been trained in a variety of public procurement practices. Furthermore, and perhaps more importantly, all of these beneficiaries now have a vibrant community of practice to draw upon when exploring new developments in public procurement.“We are exploring ways to evolve this annual gathering into a sustainable procurement professional’s network,” says Hiba Tahboub, ECA Regional Procurement Manager.The interest of international organizations in this event has also grown during the second half of the decade. The first Forum was sponsored only by the World Bank. Now, as the latest forum kicks off on May 27 in Istanbul, six international organizations are cosponsoring the Forum: the Asian development Bank, Islamic Development Bank, SIGMA, European Development and Reconstruction Bank, European Investment Bank, and the World Bank.“Improving the capacity for public procurement is fundamental to the development of any country,” says Martin Raiser, Country Director for the World Bank in Turkey, “this Forum has transformed into a leading event for procurement specialist around.”This year now marks the 10th anniversary of this Forum. Perhaps not surprisingly, as this community has grown in number and geographic reach, its breadth and scope has also expanded significantly.From the certification of more than 1000 public procurement officers in Serbia to the introduction of electronic government procurement in Armenia, the results of the past decade of cooperation among public procurement specialists through this annual forum are palpable. As the scope of this forum continues to grow and the benefits continue to build on previous successes, all the participants in this community of practice - past, present, and future – can anticipate even more tangible benefits from this Forum as it moves into its second decade of transformational change through regional cooperation. “I don’t think the transformative nature of this community of practice among public procurement officers can be overstated,” says Majed M. El-Bayya, Lead Procurement Specialist at the World Bank and coordinator of the event.“While the size and scope of this initiative have obviously grown,” continues El-Bayya, “bringing procurement professionals together to learn and share best practices with their peers across countries and regions has remained the core mission of the Forum.” Show Less -

ANKARA, May 27, 2014—The Public Procurement Authority of the Republic of Turkey and the World Bank are hosting a four-day International Knowledge Exchange Forum on Measuring Performance of Public Proc... Show More +urement in Istanbul, May 27-30.The Forum is bringing together more than 100 procurement experts from 22 countries of Europe and Central Asia, and allows the participants to learn about the recent developments in the area of public procurement in different countries. Turkish Minister of Finance Mehmet Şimşek and President of Public Procurement Authority Mahmut Gürses are attending the Forum. Organized by the Asian Development Bank, European Bank for Reconstruction and Development (EBRD), Islamic Development Bank, and the World Bank, in cooperation with SIGMA and the European Investment Bank (EIB), and hosted by the Government of Turkey this year, the Public Procurement Knowledge Exchange Platform is celebrating its 10th Anniversary.“The introduction of the Public Procurement Forum in 2005 was an important moment, in terms of support being provided by the World Bank,”noted Samia Msadek, Director for Operational Services and Quality in the ECA region of the World Bank, “this forum is fundamental in helping to ensure the sustainability of the work we are doing in coordination with our public procurement partners throughout the region.”Participants will exchange experiences and hear about advances in performance assessments of public procurement along three main dimensions: (i) national, system-level assessments of the legal framework for public procurement and the strength of institutions and processes that govern its implementation; (ii) assessments of the capacity of procuring entities, such as line ministries, local governments, or state owned enterprises to manage risks, and deploy complex procurement methods to ensure quality and efficiency; and (iii) contract level assessments that determine whether the results of a tender and subsequent contract implementation has delivered value for money.In his opening remarks, Martin Raiser, World Bank Country Director for Turkey, said, “Strong public procurement systems are central to well-functioning public financial management institutions and good public sector governance. Transparent tender documents and processes, an independent procurement agency that sets standards and monitors their enforcement, and an independent appeals body to hear complaints of participating bidders, as well as investment in capacity building and new technologies are all key to ensure the smooth functioning of a rules-based procurement system.”In twenty three different panel discussions and presentations various aspects of public procurement ranging from Measuring Performance to Developing Performance Indicators; from Measurement of Success to Benchmarking; experts will exchange experiences on public procurement policies implemented in Albania, Armenia, Azerbaijan, Belarus, Bosnia and Herzegovina, Croatia, Georgia, Kosovo, Kyrgyz Republic, Kazakhstan, FYI Macedonia, Moldova, Montenegro, Romania, Russia, Slovenia, Tajikistan, Turkey, Turkmenistan, Ukraine and Uzbekistan. Speakers from Netherlands, Italy, EU, OECD, SIGMA, EIB, WTO and the Cosponsors will also give presentations.The Platform will close with a final panel discussion on “How The Public Procurement Knowledge Exchange Platform can be Developed to a Higher Bar?” and a presentation of an action plan for the next year for all participating countries. Show Less -

ResultsThe project, supported by the loan and additional financing in 2006-2013, has exceeded its target indicators and met the important objective of improving the life of the beneficiaries residing ... Show More +in the Chernobyl-affected area.The energy-efficiency component reached about 450 schools, hospitals, and kindergartens with improved lighting, heating, window and door replacements, and other energy-efficiency measures.The average indoor temperature increased to an acceptable level, and school absences related to sickness were reduced.As many as 5,000 households, previously burning wood inside their homes, have been connected to a gas system, enabling them to benefit from an improved and more reliable and affordable heat supply.About 251,000 students, teachers, patients, and medical staff have benefited from improved energy-efficient services.The implemented measures resulted in annual savings of about 250,000 megawatt hours of heat energy and 100,000 megawatt hours of electricity.The estimated reduction of CO2 emissions attributed to more efficient heat and electricity generation is 121,150 tons per year. Show Less -

ResultsProject activities helped to ensure environmentally sound management of the destruction of high-priority stockpiles of POPs and associated contaminated equipment, provide secure storage for low... Show More +er-risk stockpiles, and support planning infrastructure to manage the future generation of POPs. Specific results included:About 3,000 tons of POPs stockpiles and wastes were recovered and packaged, about 1,800 tons have already been destroyed, and about 1000 tons of remaining stockpiles have been stored at a secure location, which significantly exceeded the original project objective of eliminating 1,800 tons of the dangerous substance.The project improved living conditions and eliminated POPs-associated health risks for 116,000 people living and working in the vicinity of the POPs waste area.The project’s partners received valuable practical experience in conducting cleanup operations, as the scope of the activities performed was unique for Belarus. Show Less -

In Emerging Europe and Central Asia, most countries have done relatively well at increasing the incomes of the bottom 40 percent, which grew by an average of 3.8 percent from 2005 to 2010, faster than... Show More + the income growth of the population overall. Even though these gains proved resilient to the 2008–09 global financial crisis, the region now stands at a crossroads.The crisis that abruptly halted a prolonged period of strong economic growth in the first decade of the century has been followed by a tepid recovery, leaving many economies in Emerging Europe and Central Asia at risk of economic stagnation. Short- to medium-term growth forecasts remain grim, with fiscal austerity measures and stifled investment fueling growing frustration and social unrest – particularly among the young, unemployed, and socially excluded.To prevent past economic gains from being reversed, a better understanding of the interplay between equity and growth is essential for development practitioners, policy makers, and governments.The World Bank Group has recently renewed its overall strategy, establishing two overarching goals: eliminating extreme poverty and boosting shared prosperity. The latter objective, which is the focus of a new report, Shared Prosperity: Paving the Way in Europe and Central Asia, aims to increase the welfare of the bottom 40 percent of the income distribution in every country. Long-term sustainability of social progress is also an important consideration in pursuing both of these overarching goals.A commitment to the advancement of the least well-off is not new for the World Bank, which has consistently worked to ensure that economic growth is shared widely, and that it benefits lower-income groups. In 1974, a group of World Bank economists first highlighted the need to view distributional objectives jointly with growth objectives, and to express these objectives dynamically in terms of desired rates of growth of income of different groups. Their quest reflected an early vision of what would eventually become an integral part of the World Bank Group’s strategy to foster income growth of the bottom 40 percent of the population in every country.Four decades ago, the existing data was far less comprehensive and advanced than that which is available today. With more than 4,000 surveys of households and firms across 192 countries, a wealth of data now exists on a wide range of topics such as living standards, demographic characteristics and health conditions, financial situations, constraints to growth, and investment environments, which helps to advance economic theory and to better identify and evaluate the impact of economic shocks and policies.New ways of thinking are required in the debate about shared prosperity in Emerging Europe and Central Asia – and beyond – if we are to better understand the conditions and policies that lead to more systematic income growth for the bottom 40 percent and identify policies and investments that can help countries accelerate income growth for this group of the population.To this end, the report seeks to provide a view of shared prosperity that reconciles equity and growth, while building a bridge between macro-economic and micro-economic drivers of income growth among the bottom 40 percent in different parts of the region. Achieving shared prosperity may be an enormous challenge, but it is one that can be met with bold thinking and determined action.Related Feature Story: Mariam and Emre - two stories of shared prosperity Show Less -

IBRD Loan: US $90 million Terms: Maturity = 15 years, Grace = 4 yearsProject ID: P146493Project Description: The objective of the project is to increase access to water supply ser... Show More +vices and to improve the quality of water supply and wastewater services in selected urban areas in all six oblasts of the country.For more information, please visit: http://www.worldbank.org/en/country/belarus Show Less -

IBRD Loan: US $90 million Terms: Maturity = 15 years, Grace = 5 yearsProject ID: P146194Project Description: The objective of the project is to scale up the efficient use of renewable... Show More + biomass in heat and electricity generation in selected towns of Belarus.For more information, please visit here:http://www.worldbank.org/projects/P146194?lang=en Show Less -

Washington, March 31, 2014 - The World Bank Group’s Board of Executive Directors today approved a US$90 million loan to the Republic of Belarus for an additional financing to the ongoing Water Supply ... Show More +and Sanitation Project. The project helps to increase access to and improve the quality of water supply and wastewater services in eight cities of the country and support the modernization of the sector.The level of water supply and wastewater services in urban areas of the country is high by regional standards, and has shown steady improvement in the last 15 years. However, the reliability and safety of the services in some regions are less than satisfactory due to service interruptions, high losses in the distribution systems, and substantial operational costs incurred as a result of aging infrastructure and the need for maintenance. Water with iron content exceeding World Health Organization and national standards is still supplied to more than 20 percent of the population across Belarus.“The project supports rehabilitation of facilities and overall sustainability of the water sector through revision of design norms, benchmarking of service providers and improving the energy efficiency of water and wastewater services,” said Stephane Dahan, World Bank Task Team Leader for the Project. “The project preparation relied on findings of Belarus Municipal Water Sector Review (2013) that identified a number of acute challenges, such as the need for modernization and improved financial sustainability in the context of decreasing financial support from the budget.”The project complements the National Water Development Program Clean Water and scales up the improvements achieved in water and wastewater services under the original US$60 million loan approved in 2008. The new loan will finance upgrade and reconstruction of wastewater treatment plants in four towns; rehabilitation of trunk wastewater transmission systems in the cities of Mogilev and Grodno, and the upgrade of water production facilities and distribution systems in the towns of Rogachev and Shklov. The project will also strengthen the capacity of the participating utilities to provide better information to customers and develop social accountability mechanisms for water and wastewater services.“In addition to the investments made to upgrade the physical infrastructure, the project will support the country in formulating sound policies to ensure efficient investments in the sector, enhance its financial sustainability, thereby ensuring the affordability of the services the customers,” said Young Chul Kim, World Bank Country Manager for Belarus.Belarus joined the World Bank in 1992. The current investment lending portfolio includes five operations for a total amount of US$647.5 million. Since Belarus joined the Bank, lending commitments to the country have totaled US$1.1 billion; in addition, 30 national programs have received grant financing totaling US$23.7 million. The World Bank’s analytical and advisory activity program addresses main challenges and reform priorities of the country. Show Less -

WASHINGTON, March 31, 2014 - The World Bank Group’s Board of Executive Directors today approved a loan in the amount of US$90 million to the Republic of Belarus for the Biomass District Heating Projec... Show More +t. The project will help to scale up efficient use of renewable biomass in heat and electricity generation, thereby lowering operating cost and improving fuel security in thirteen towns of the country, enhancing living and working conditions of 79,000 Belarusians.Lacking a sufficient energy resource base, Belarus relies heavily on imported energy resources to meet domestic energy demand. The Government plans to increase the share of local fuels, mainly biomass, in energy supply from 25 percent in 2011 to 32 percent in 2020. District heating plays an important role in the energy system of the county as sixty percent of the population relies on it for heat supply.“By improving energy efficiency and replacing imported natural gas and oil with less expensive local wood biomass, the project would reduce the cost of heat supply on average by 63 percent in participating project towns, thereby reducing the burden of heating cost on household budget,” said Fan Zhang, World Bank Task Team Leader for the Project.The project will finance replacement of existing gas and oil boilers by biomass boilers, provision of wood chipping equipment and biomass fuel storage facilities, installation of individual building-level heat substations with temperature control, and upgrading of district heating networks. The project will also support participating utilities to communicate more proactively with their customers, including on existing grievance redress mechanisms and feedback analysis to enhance service delivery, and facilitate a shift from volume-based to energy-content-based biomass pricing. Finally, the project will contribute to the reduction of greenhouse gas emissions, with total projected lifetime carbon dioxide emissions savings to be 2.1 million tons. “Forest is one of Belarus’s richest natural resources. The full potential of wood biomass as alternative renewable energy resource has yet to be realized in Belarus,” noted Young Chul Kim, World Bank Country Manager for Belarus. “Using low-quality wood, now treated as industrial waste, for heat and power generation will also contribute to the development of the wood processing industry, and is consistent with the national overall strategy to encourage sustainable forest management. It also allows new jobs and business opportunities to be created in these sectors.”Since late 1990s, the Bank has assisted the country in improving energy efficiency and increasing the use of renewable energy through investment financing, policy advisory support, and technical assistance. These efforts have included two demand-side energy efficiency projects—the Social Infrastructure Retrofitting Project and the Post-Chernobyl Recovery Project—and a supply-side project aimed at improving energy efficiency in heat and power generation—the Energy Efficiency Project. Energy Sector Management Assistance Program (ESMAP) Study assisted in reviewing Belarus’s legal and regulatory framework for renewable energy and opportunities for harmonization with the European Union, provided recommendations on removing barriers to and options for increased use of biomass energy for heat production, and energy efficiency, as well as opportunities to increase private sector participation in the sector.Belarus joined the World Bank in 1992. The current investment lending portfolio includes five operations for a total amount of US$647.5 million. Since Belarus joined the Bank, lending commitments to the country have totaled US$1.1 billion; in addition, 30 national programs have received grant financing totaling US$23.7 million. The World Bank’s analytical and advisory activity program addresses main challenges and reform priorities of the country. Show Less -

Minsk, March 28, 2014 - Macroeconomic stability and fundamental structural reforms are important for putting Belarus on a sustainable growth path, says a World Bank Economic Update for Belarus.A weak ... Show More +external environment, accumulated macroeconomic imbalances, and delays in structural reforms have put Belarus on a low growth path. Real GDP grew tepidly at 0.9 percent in 2013. This weak growth came mainly from expansion in domestic demand while net exports registered a sharp decline. Inflation stayed high at 16.5 percent by the end of the year. On the fiscal front, while government budget achieved a small surplus, recapitalization of state-owned banks weakened the fiscal position. Externally, current account deficit reached over 10 percent of GDP. The economic outlook for 2014 shows significant challenges ahead if global conditions remain weak, domestic macroeconomic problems continue, and structural reforms are delayed. Immediate corrective actions – macroeconomic stabilization and carefully-sequenced structural reforms – are needed to put Belarus on a robust growth path. Show Less -

A Frog-Friendly RoadBiologists have praised the stringent environmental standards applied during reconstruction that preserved the delicate habitat along the road. Ruslan Novitskiy of the Belarus Nati... Show More +onal Academy of Sciences says that the new road has a unique infrastructure, allowing for preservation of the surrounding habitat and endangered species such as the great crested newt (triturus cristatus) and broad-leaved garlic (allium ursinum). Workers dug four new ponds for crested newts during the road expansion, and replanted patches of broad-leaved garlic and other special plants in which the newts lay their eggs.Underneath the motorway, engineers built special tunnels for migrating frogs. Builders also put up fences on both sides of the road where it cuts through lush green forests in order to reduce the risk of an animal leaping onto the road, which might cause danger to passing motorists or to itself. Show Less -

The Country Opinion Survey for FY2013 in
Belarus assists the World Bank Group (WBG) in gaining a
better understanding of how stakeholders in Belarus perceive
the WB... Show More +G. It provides the WBG with systematic feedback from
national and local governments, multilateral/bilateral
agencies, media, academia, the private sector, and civil
society in Belarus on 1) their views regarding the general
environment in Belarus; 2) their overall attitudes toward
the WBG in Belarus; 3) overall impressions of the WBGs
effectiveness and results, knowledge work and activities,
and communication and information sharing in Belarus; and 4)
their perceptions of the WBGs future role in Belarus. Show Less -

Belarus demonstrated strong economic
growth 2000-2008 and this translated into fast poverty
reduction. Belarus invested a lot in the human capital of
its population... Show More + both in men and women. This assessment
identifies and describes main gender disparities in Belarus
in agency, education, health, and access to economic
opportunities. The report builds on the framework of the
World Bank's regional gender report, Europe and Central
Asia: opportunities for men and women, as well as the World
development report on gender and development. The assessment
takes a quantitative approach using a wide range of
different international data sources including World
Bank's world development indicators, the global
financial inclusion database, the life in transition survey,
European Bank for Reconstruction and Development
(EBRD)-World Bank business environment and enterprise
performance survey as well as local household living
standards survey. The report is organized as follows:
section one discusses agency and describes factors which may
shape the process how men and women use their endowments and
utilize economic opportunities to achieve desired outcomes.
The second section analyzes gender disparities in
endowments, such as health and education. The third section
focuses on gender gaps in the labor market, entrepreneurship
and earnings, access to finance and poverty. The fourth
section presents conclusions and policy recommendations. Show Less -

WASHINGTON, February 3, 2014 – Having natural resources does not have to be a curse, it can be a blessing if the countries ensure proper management of revenues from natural resources, invest earnings ... Show More +in building up physical and human capital, and improve institutions, says the World Bank’s newly-released report “Diversified Development: Making the Most of Natural Resources in Eurasia”. The report has been produced in partnership with the Eurasian Development Bank.“The experience of resource-rich countries around the world shows that diversification of exports or production may be neither necessary nor sufficient for development,” said Laura Tuck, World Bank Vice President for Europe and Central Asia. “Our new report recommends that governments in the Eurasia region need to worry less about diversifying their exports or production, and think more about building diversified national asset portfolios – to ensure better balance between natural resources, built capital, and economic institutions.”According to the report, Eurasia’s portfolios are currently heavy in tangible assets such as oil and gas, schools and hospitals, and in some cases roads and railways. At the same time they are lagging behind more successful countries in intangible assets such as education levels, quality of healthcare, and institutions for managing volatile resource rents, providing high-quality public services, and effectively regulating private enterprise.“The main observation of the report is that diversified development is the result of successful development and not the cause of successful development,” said Hans Timmer, World Bank Chief Economist for Europe and Central Asia. “Successful countries will diversify in a natural way, as they diversify their assets and improve institutions. Forced diversification, for example by subsidizing new industries, if it is not consistent with the country’s endowments, will almost always fail as it usually results in economic inefficiency.”The report studies economic development in the twelve countries of Eurasia, where six countries are rich in natural resources: Azerbaijan, Kazakhstan, Russia, Turkmenistan, Ukraine, and Uzbekistan, and the other six countries are not: Armenia, Belarus, Georgia, Kyrgyz Republic, Moldova, and Tajikistan. In the last two decades, natural resources have played a central role in the development of the whole region, as countries which are rich in natural resources grew their wealth and shared their prosperity with the rest of the region through trade, migration, investment or aid.The report finds that the wealth of natural resources has served Eurasia well so far, helping improve the living standards for most of Eurasia’s 280 million people. Since 2000, individual incomes increased fivefold, and health and education services have improved. The most impressive achievement is the remarkable poverty reduction in the region, as poverty has fallen to half of what it was in the 1990s. All these improvements coincided with high and rising commodity prices.“To address the challenge of high volatility caused by unstable commodity prices, the policymakers in Eurasia may wish to learn from the lessons of other resource-rich countries, both successful and unsuccessful,” said Ivailo Izvorski, World Bank Sector Manager for Economic Management and Poverty Reduction in Europe and Central Asia and a report co-author. “Our analysis shows that resource-rich countries that made early improvements in the quality of essential services and the regulation of private enterprise were more successful in controlling volatility and becoming sustained high-income economies.”The report suggests that better economic institutions in all Eurasian countries could enhance the stability and reduce the volatility of public finances, improve education and infrastructure to make workers more productive, and strengthen the competition regimes to encourage private enterprise and entrepreneurship. Stabilization, education, and competition are identified as three priorities for the Eurasian countries for the next decade.According to the report, success in overall development in resource-rich countries is directly linked to how successful countries are in converting their resource revenues into built capital, such as infrastructure and healthy and skilled population. The report recommends that both resource-rich and resource-poor countries in Eurasia may wish to make a big push to improve their infrastructure, such as roads and railways, pipelines, electricity grids, and communication networks. Generally, resource-poor countries in the region lag behind their richer neighbors in infrastructure, but they have been steadily increasing public investment and managed to boost their per capita physical capital by almost a third in 2010 relative to 2005. The countries where investment in physical capital could help the most are Russia and Ukraine.For every other country in the region, the more urgent investment is in human capital, especially education. International assessments of the quality of education show that the region is lagging significantly. The report suggests that Eurasian resource-rich and resource-poor countries can benefit from both spending more and improving the efficiency of public spending in education.Another important finding of the report is that integration into global markets is a key factor of success, as it helps create prosperity regardless of diversification. The report compares three sub-regions – East Asia, Central Europe, and Eurasia – and draws the conclusion that all of them succeeded by integrating into global markets using their comparative advantage: labor in East Asia, capital in Central Europe, and natural resources in Eurasia. Eurasia can do even better by expanding its trade with East Asia in addition to strengthening established links with Western Europe.For more information on the World Bank’s work in Emerging Europe and Central Asia, please visit: http://www.worldbank.org/ecaVisit us on Facebook: https://www.facebook.com/WorldBankEuropeCentralAsiaGet updates via Twitter: http://www.twitter.com/worldbankFor our YouTube channel: http://www.youtube.com/worldbank Show Less -